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Can a Life Estate Deed Name A Trust as Remainderman?

Real Estate - Property Risk and Estate Planning

Yes, a Life Estate Deed can name a trust as the remainderman. In such a case, upon the death of the life tenant, the property would transfer to the trust rather than to individual beneficiaries. This arrangement allows for more flexibility and control over how the property is managed and distributed after the life tenant’s death.

Benefits of Naming a Trust as the Remainderman

1. Asset Management: By naming a trust as the remainderman, you can ensure that the property is managed according to the terms of the trust. This is particularly beneficial if you want the property to be held for the benefit of minor children, individuals with special needs, or beneficiaries who may not be ready to manage the property themselves.

2. Privacy: Trusts generally provide more privacy than a direct transfer to individual beneficiaries. While deeds are public records, the terms of the trust are not, so the details of how the property will be handled after your death remain confidential.

3. Probate Avoidance: Just like naming individual remaindermen, naming a trust as the remainderman also avoids probate, as the property automatically transfers to the trust without the need for court involvement.

4. Flexibility and Control: A trust allows you to set specific conditions or instructions for how the property is to be used or distributed. For example, you can specify that the property should be sold and the proceeds distributed among your beneficiaries, or that a certain person may continue to live in the property under certain conditions.

5. Tax Planning: Depending on the structure of the trust, there may be tax advantages to holding the property in trust, particularly in terms of estate tax planning.

Considerations When Naming a Trust as the Remainderman

1. Trust Setup and Maintenance: Creating and maintaining a trust can involve more complexity and cost than simply naming individual beneficiaries. It’s important to work with an experienced attorney to ensure that the trust is properly established and funded.

2. Trust Administration: After the life tenant’s death, the trustee will be responsible for managing the property according to the trust’s terms. Choosing a trustworthy and capable trustee is crucial to ensure that your wishes are carried out as intended.

3. Impact on Medicaid Planning: If Medicaid planning is a concern, it’s important to consider how naming a trust as the remainderman might affect eligibility and estate recovery. While a properly structured trust can offer some protection, there are specific rules and considerations that need to be addressed.

In conclusion:

Naming a trust as the remainderman in a Life Estate Deed can provide significant advantages in terms of flexibility, control, and privacy. However, it is essential to work with legal and financial professionals to ensure that this approach aligns with your overall estate planning goals.

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Medicaid Eligibility | Estate Recovery | Life Estate Deeds | Potential Risks

Real Estate - Property Risk and Estate Planning

Understanding Medicaid Estate Recovery and Life Estate Deeds: Potential Risks

When incorporating a Life Estate Deed into estate planning, especially with the goal of protecting property from Medicaid estate recovery, it’s crucial to grasp the potential risks and limitations involved. Medicaid estate recovery allows states to recover costs from the estate of a deceased person who received Medicaid benefits. These rules differ across states, and a Life Estate Deed might not fully protect a property from Medicaid recovery efforts. Below, I’ll discuss the potential downsides of using a Life Estate Deed in connection with Medicaid estate recovery in Massachusetts and other states.

Important Side Note: I know that Massachusetts, and possibly many other states, have changed the terms when applying for and receiving Medicaid. In Massachusetts, I am aware that the recipient is required to sign documents that allow the state to not only go after the recipient’s property, but the property or assets of relatives in order to recover costs. So, please be aware of what is signed and who you are allowing the state to pursue when applying for Medicaid.

1. Medicaid Estate Recovery Overview

– What It Involves: Medicaid estate recovery permits states to reclaim expenses paid for Medicaid benefits, particularly for long-term care services, after the beneficiary’s death. Recovery typically targets assets in the deceased person’s estate.

– Timing: Recovery generally occurs after the death of the Medicaid recipient, focusing on assets that are part of the estate or, in some states, those that passed outside of probate.

2. Life Estate Deeds and Medicaid Eligibility

– Look-Back Period Considerations: When applying for Medicaid, there’s usually a five-year look-back period during which any transfers of assets, including through a Life Estate Deed, are reviewed. If the Life Estate Deed was created within this period, it could be treated as an improper transfer, potentially delaying Medicaid eligibility.

– Asset Exclusion: If the Life Estate Deed is established outside the look-back period, the property typically won’t count as an asset when determining Medicaid eligibility. This enables the life tenant to qualify for Medicaid benefits while keeping the right to live in the property.

3. Medicaid Estate Recovery and Life Estate Deeds

– Impact After Death: While a Life Estate Deed allows property to bypass probate and transfer directly to the remaindermen, it doesn’t always prevent Medicaid estate recovery. States may still pursue recovery based on the life tenant’s interest in the property at the time of death (and, they may even pursue the assets of family members – discussed above.)

-Massachusetts Specifics: In Massachusetts, the state generally does not include the remainder interest in a life estate in the estate of the deceased life tenant. However, Massachusetts could attempt to recover from the value of the life tenant’s interest in the property at the time of their death. Whether recovery occurs depends on the specific circumstances and timing of the deed.

-Other States: In some states, estate recovery may be more aggressive. States with broader definitions of what constitutes an “estate” for Medicaid purposes might include life estates in their recovery efforts, even if the property passed outside probate.

4. Potential Cons of Using a Life Estate Deed for Medicaid Planning

– Residual Interest: Even though the property transfers directly to the remaindermen at the life tenant’s death, states may argue that the life tenant’s retained interest in the property (i.e., the right to use it during their lifetime) is still part of their estate, making it subject to Medicaid recovery.

– Medicaid Liens: States may place a lien on the property during the Medicaid recipient’s lifetime for benefits received, particularly for long-term care. After the recipient’s death, the lien might need to be satisfied, potentially reducing the value transferred to the remaindermen.

– Valuation and Recovery: States might seek recovery based on the value of the life tenant’s interest in the property at death. This valuation is typically determined using actuarial tables based on the life tenant’s age. The remaindermen might be required to pay the state an amount equivalent to the life tenant’s interest value, which could diminish the benefits of using a Life Estate Deed.

– Risk of Forced Sale: If the state successfully recovers from the life estate, the remaindermen may be compelled to sell the property to satisfy the claim, counteracting the original goal of keeping the property within the family.

5. Alternatives and Strategies

– Irrevocable Trusts: An irrevocable trust may offer stronger protection against Medicaid estate recovery than a Life Estate Deed. By transferring property to an irrevocable trust, it is removed from the Medicaid applicant’s assets after the look-back period, reducing the risk of estate recovery.

– Consult Legal Experts: Medicaid laws are intricate and vary by state, making it essential to consult an experienced elder law or estate planning attorney. They can help navigate the rules and explore alternatives to Life Estate Deeds that may better protect assets.

– Early Planning: Planning well in advance of potential long-term care needs is key. Establishing a Life Estate Deed or transferring assets to a trust before the Medicaid look-back period can help mitigate risks and secure asset protection.

Conclusion

While Life Estate Deeds are valuable tools for avoiding probate and protecting property during the life tenant’s lifetime, they do not fully eliminate the risk of Medicaid estate recovery. Since the rules and risks vary across states, including Massachusetts, it’s important to be aware that states may still seek recovery based on the life tenant’s interest in the property. To ensure your estate plan effectively meets your goals, consulting with legal professionals and considering all available strategies is essential.

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Life Estate vs Transfer on Death Deed – Massachusetts

Reverse Mortgage or List it?

Life Estate Deeds and Transfer on Death Deeds in Massachusetts

When planning your estate, ensuring that your assets pass smoothly to your heirs without the delays and costs associated with probate is often a primary concern. Two common tools used in other states for this purpose are Life Estate Deeds and Transfer on Death (TOD) Deeds. In Massachusetts, only one of these options is available—Life Estate Deeds—while the other, the TOD Deed, is not permitted. Understanding how these deeds work and the reasons behind the legal restrictions in Massachusetts can help you make informed decisions about your estate plan.

Life Estate Deeds in Massachusetts

A Life Estate Deed is a legal document that allows a property owner (the “life tenant”) to retain ownership and use of their property during their lifetime while designating one or more beneficiaries (the “remaindermen”) who will automatically receive ownership of the property upon the life tenant’s death. The life estate deed is a popular tool in Massachusetts for avoiding probate, as the property bypasses the probate process and transfers directly to the beneficiaries upon the life tenant’s death.

How a Life Estate Deed Works

To create a Life Estate Deed in Massachusetts, the property owner signs and records a deed that conveys the property to themselves as the life tenant and to their beneficiaries as the remaindermen. This creates two types of ownership interests: a life estate for the life tenant and a remainder interest for the remaindermen.

During the life tenant’s lifetime, they have the right to live in, use, and benefit from the property. They are responsible for maintaining the property and paying associated costs such as property taxes and insurance. However, they cannot sell or mortgage the property without the consent of the remaindermen.

Upon the life tenant’s death, the life estate automatically terminates, and full ownership of the property passes to the remaindermen without the need for probate. This transfer occurs because the remaindermen’s interest was established when the deed was executed and recorded, making it a non-probate asset.

Side Note: Can a Trust be named as the remaindermen: In short, yes. Click this link to read more about this option.

Pros of Life Estate Deeds

1. Avoidance of Probate: The primary advantage of a Life Estate Deed is that it avoids probate, ensuring a quicker and more cost-effective transfer of the property to the beneficiaries.

2. Retained Control: The life tenant retains the right to live in and use the property for the rest of their life, giving them control over their living situation.

3. Medicaid Planning: A Life Estate Deed can be a useful tool in Medicaid planning, as the value of the property is not counted as an asset for Medicaid eligibility purposes after the five-year look-back period. However, it is important to consult with an attorney or financial planner to understand the specific implications for Medicaid in your situation.

4. Potential Tax Benefits: When the property passes to the remaindermen, they may benefit from a “step-up” in basis, which can reduce the capital gains tax liability if they decide to sell the property.

Cons of Life Estate Deeds

1. Irrevocability: Once a Life Estate Deed is executed, it is difficult to change or undo without the consent of the remaindermen. If circumstances change, such as a need to sell the property or a falling out with the beneficiaries, the life tenant’s options are limited. However, if the remaindermen is a Revocable Trust, and the original owner of the property is the named Trustee, then, yes, the Life Tenant/Original Owner can sell the property without the consent of the Trust’s beneficiaries – key word being “Revocable.”  If the Trust is Irrevocable, then the named beneficiaries of the Trust would have to agree and consent to the sale.

Further Clarification on Irrevocability and Trusts

– Life Estate Deeds and Irrevocability: Once a Life Estate Deed is executed, it is indeed difficult to change or undo without the consent of the remaindermen (the beneficiaries named to receive the property upon the life tenant’s death). This limitation applies to selling or mortgaging the property as well.

– Revocable Trust as Remainderman: If the remainderman is a Revocable Trust and the original owner (the life tenant) is also the trustee of that trust, the situation changes. Because the trust is revocable, the original owner/trustee retains full control over the assets in the trust, including the ability to sell the property without needing the consent of the trust’s beneficiaries. The key point here is that as long as the trust remains revocable, the original owner/trustee can modify or revoke the trust, making it easier to sell or manage the property.

– Irrevocable Trust as Remainderman: On the other hand, if the trust is irrevocable, the situation becomes more complex. In an irrevocable trust, the trustee must act in accordance with the trust terms and for the benefit of the beneficiaries. Therefore, if the life tenant (who is no longer the sole owner of the property) wants to sell the property, they would generally need the consent of the beneficiaries or follow the specific provisions of the irrevocable trust that may dictate how and when the property can be sold.

To Summarize: 

The distinction between revocable and irrevocable trusts as remaindermen is as follows: When a Revocable Trust is the remainderman and the life tenant is the trustee, the life tenant retains control and can sell the property without needing the consent of the beneficiaries. However, if the trust is irrevocable, the consent of the beneficiaries is typically required to sell the property.

2. Loss of Flexibility: Because the life tenant cannot sell or mortgage the property without the remaindermen’s consent, they lose some flexibility in managing their property. This can be particularly problematic if financial or medical needs change.

3. Medicaid Estate Recovery: While a Life Estate Deed can protect a home from Medicaid during the life tenant’s lifetime, it may still be subject to Medicaid estate recovery after their death, depending on the circumstances.

4. Potential Family Conflict: The involvement of multiple parties with different interests in the property can lead to conflicts. For example, if the life tenant wants to sell the property and the remaindermen do not agree, it can create tension.

Transfer on Death (TOD) Deeds and Their Absence in Massachusetts

A Transfer on Death (TOD) Deed, also known as a beneficiary deed, is a legal document that allows property owners to name a beneficiary who will automatically inherit the property upon the owner’s death, without the need for probate. TOD deeds are used in many states as a simple and flexible way to transfer real estate upon death. However, Massachusetts does not allow the use of TOD Deeds.

How TOD Deeds Work (In States Where Permitted)

In states where TOD Deeds are allowed, the property owner signs and records a deed that designates a beneficiary to receive the property upon their death. The owner retains full control over the property during their lifetime, including the ability to sell, mortgage, or revoke the TOD deed at any time.

When the property owner dies, the TOD deed automatically transfers ownership of the property to the named beneficiary, bypassing probate. The transfer is simple and does not require the involvement of the courts, making it an attractive option for those seeking to avoid probate.

Why Massachusetts Does Not Allow TOD Deeds

Massachusetts has not adopted the Uniform Real Property Transfer on Death Act, which authorizes TOD deeds in other states. There are several reasons for this:

1. Legal Tradition: Massachusetts has a long legal tradition of using wills, trusts, and other established methods to transfer property upon death. The state has been slow to adopt TOD deeds, in part because these traditional methods are well-established and widely used by legal practitioners.

2. Concerns About Fraud and Abuse: One of the main concerns with TOD deeds is the potential for fraud or undue influence. Because TOD deeds can be executed without the involvement of an attorney or the oversight of the court, there is a risk that vulnerable individuals could be coerced into signing away their property. Massachusetts lawmakers may have decided that the risks outweigh the benefits.

3. Preference for Probate Court Oversight: Probate court oversight provides a layer of protection against disputes and ensures that the decedent’s wishes are carried out in accordance with the law. By requiring property transfers to go through probate or be handled through other legal mechanisms, Massachusetts may be seeking to preserve this oversight.

4. Alternative Solutions: Massachusetts offers alternative estate planning tools, such as trusts and life estate deeds, which can achieve similar results to TOD deeds while providing more protection against potential problems. These tools are well-understood and widely used in the state, reducing the need for TOD deeds.

Conclusion

In Massachusetts, Life Estate Deeds remain a viable and effective tool for avoiding probate and ensuring that property passes smoothly to beneficiaries. While they offer advantages such as probate avoidance and retained control, they also come with limitations, particularly in terms of flexibility and potential Medicaid implications. Further, a Life Estate Deed can name a Trust as the remainderman. On the other hand, TOD deeds, which provide a simpler and more flexible method of property transfer in other states, are not allowed in Massachusetts due to concerns about fraud, abuse, and a preference for probate court oversight.

For those seeking to avoid probate in Massachusetts, it is essential to explore all available options, including life estate deeds, trusts, and other estate planning tools. Consulting with an experienced estate planning attorney can help you navigate these complexities and choose the best approach for your situation.

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Weighing Pros and Cons / Discussion of General Features of a Viatical Settlement

What is a Viatical Settlement?

A viatical settlement is a financial arrangement that provides individuals with a means to access funds from their life insurance policy before their death. The primary feature of a viatical settlement is the sale of a life insurance policy to a third party, usually a specialized investment firm, in exchange for a lump sum payment. This arrangement can offer significant benefits to policyholders, particularly those facing terminal or chronic illnesses, by enabling them to convert their life insurance benefits into immediate cash. However, there are pros and cons to consider. Please read on…

Viatical Settlement, Pros and Cons

Understanding Viatical Settlements

To fully grasp the primary feature of a viatical settlement, it’s essential to understand the mechanics of this financial tool. Typically, an individual who holds a life insurance policy that does not include “Lifetime Benefits” decides to sell the policy due to an urgent financial need, often related to medical expenses or other critical financial pressures. The process involves a few key steps:

1. Assessment of Policy Value: The individual, also known as the policyholder, contacts a viatical settlement provider who evaluates the value of the life insurance policy. This evaluation considers factors such as the policy’s face value, the insured person’s life expectancy, and the terms of the policy.

2. Offer and Acceptance: Based on the evaluation, the provider makes an offer to purchase the policy. If the policyholder accepts the offer, the provider buys the policy and becomes the new beneficiary. The policyholder receives a lump sum payment, which is generally less than the policy’s face value but more than the cash surrender value.

3. Ongoing Premium Payments: After the settlement, the provider assumes responsibility for paying the policy premiums. In return, the provider will receive the death benefit when the insured person passes away.

4. Payout: Upon the death of the insured, the settlement provider collects the death benefit from the insurance company, which can be a substantial amount, depending on the policy’s face value.

Pros & Cons: Some Benefits and Considerations

The primary feature of a viatical settlement is the sale of the insurance policy for immediate cash, which provides several potential advantages:

-Immediate Cash Access: For policyholders facing terminal illness or severe financial need, a viatical settlement offers a quick way to access substantial funds. This can alleviate the stress of paying for expensive medical treatments, covering living expenses, or fulfilling other financial obligations.

– Relief from Premium Payments: By selling the policy, the policyholder no longer needs to worry about making ongoing premium payments, which can be a relief, especially for those on a fixed income or dealing with mounting medical costs.

– Use of Funds: The lump sum received can be used at the policyholder’s discretion. This flexibility allows individuals to address their specific financial needs, whether they involve medical care, debt reduction, or improving quality of life.

However, there are also some considerations and potential downsides to be aware of:

– Reduced Death Benefit for Beneficiaries: Since the policy is sold to a third party, the original beneficiaries will not receive the full death benefit upon the insured’s death. Instead, the buyer of the policy receives the payout, which can impact the financial planning of the policyholder’s family or loved ones.

– Potential Impact on Eligibility for Assistance: In some cases, receiving a lump sum from a viatical settlement may affect eligibility for government assistance programs, such as Medicaid. It is important for individuals to consider these implications and consult with financial advisors or legal professionals before proceeding.

– Tax Implications: The proceeds from a viatical settlement can have tax implications. While some states and federal regulations might exempt the settlement amount from income tax, it is crucial to understand the tax consequences and seek guidance from tax professionals.

The Primary Feature of a Viatical Settlement:

In summary, the primary feature of a viatical settlement is the conversion of a life insurance policy into immediate cash by selling it to a third party. This financial arrangement provides policyholders, especially those with terminal or chronic illnesses, with a valuable opportunity to access funds that can significantly impact their quality of life and financial stability. While the immediate benefits can be substantial, it is essential for individuals to weigh these advantages against potential drawbacks, such as reduced death benefits for beneficiaries and possible tax implications. As with any significant financial decision, careful consideration and professional advice are key to making an informed choice.

Life Insurance for the Living:

Living Benefit Riders:

For those who may want to address the possibility of future cash needs for either emergency cash or long-term care, you may look into purchasing policies that do allow for Living Benefits – using Life Insurance while you’re still alive!

Many insurance carriers offer life insurance policies with living benefits or long-term care riders. These riders can provide financial assistance if the insured needs long-term care or faces critical, chronic, or terminal illnesses. Here are some notable carriers known for offering such policies:

1. Nationwide
– Policy: Nationwide Life Insurance Policies
– Riders: Nationwide offers various riders, including long-term care riders and critical illness riders, on their life insurance policies.

2. MetLife
– Policy: MetLife’s Universal Life Insurance
– Riders: MetLife provides options for accelerated death benefits, critical illness riders, and long-term care riders.

3. Prudential
– Policy: Prudential’s Permanent Life Insurance
– Riders: Prudential offers several riders including accelerated death benefits and long-term care riders.

4. John Hancock
– Policy: John Hancock Life Insurance Policies
– Riders: Known for their Vitality Program, John Hancock also provides options for long-term care riders and accelerated death benefit riders.

5. Lincoln Financial
– Policy: Lincoln LifeSpan and Lincoln WealthAdvantage
– Riders: Lincoln Financial offers a range of living benefits including critical illness riders and long-term care riders.

6. MassMutual
– Policy: MassMutual Whole Life and Universal Life Policies
– Riders: MassMutual offers riders for long-term care and chronic illness benefits.

7. Transamerica
– Policy: Transamerica Life Insurance
– Riders: Transamerica includes options for accelerated death benefits and long-term care riders in many of their policies.

8. State Farm
– Policy: State Farm Life Insurance Policies
– Riders: State Farm provides options for living benefits riders and long-term care riders.

9. AIG (American International Group)
– Policy: AIG Life Insurance
– Riders: AIG offers various riders including critical illness and long-term care riders.

10. New York Life
– Policy: New York Life Permanent Life Insurance
– Riders: New York Life provides options for accelerated death benefits and long-term care riders.

These carriers offer a variety of policies and riders, so it’s important to compare the specifics of each to find the one that best meets your needs. Additionally, the availability of these riders can vary based on the policy type, state regulations, and individual underwriting requirements. Always consult with a financial advisor or insurance professional to ensure you choose the right policy and rider for your specific circumstances.

If you’d like a free quote, please contact me via the “contact me” page. I will be happy to work with you!

God Bless,

Toni

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A Question About Life Insurance, Final Expense, Mortgage Insurance, Reverse Mortgage, and Social Security During Hospice Care

Reverse Mortgage or List it?

Here’s a question posed by a member in one of my Facebook Groups I belong to that I’d like to share. It is a “real-world” situation that many people find themselves in simply because they, quite unfortunately, didn’t have life insurance in place at a younger, healthier, age. Here’s the situation:

Hospice Care, Life Insurance & Final Expense Question: 

“My grandpa just got put on in-home hospice due to terminal cancer. He maybe has a month or two if we’re LUCKY. He is a Vietnam vet, and they have a house but do not own it outright. Is there any sort of life insurance he could get or any insurance at all to help my grandma after his death with living expenses?”

Possible Reverse Mortgage Solution:

Unfortunately, there were some in the group who suggested a reverse mortgage solution for the grandmother.

Those who know me, also know that I am also a Licensed Real Estate Broker in the state of Massachusetts in addition to being a Licensed Insurance Broker. Please, please, please, think twice before considering a Reverse Mortgage. There are so many loopholes, and agreements. The owner can lose the house regardless. I had one client who did this, and her equity was being whittled away much sooner than she had ever anticipated. Her “attorney” was supposed to look out for her. He didn’t. The Government approval process with the HUD-assigned representative was supposed to look out for her, she didn’t. My client was eventually threatened with foreclosure because they didn’t like the repairs she was required to do “in the agreement,” so they sent her a pre-foreclosure letter. I quickly listed her house and got her out of her Reverse Mortgage situation just in time with approx. 20K in equity left…. Please think twice before doing a Reverse Mortgage. The underlying bank has absolutely NO PROBLEM foreclosing on a widowed woman trying to keep a roof over her head.

Life Insurance Or Mortgage Protection Insurance:

It is unfortunate that they waited too long before looking into Life Insurance. A Whole Life Insurance policy with Living Benefits would have been very helpful in this situation. Even if they had purchased Mortgage Protection Insurance when they mortgaged the home would have helped. It would have paid off the home for her had it been in place prior. From what I understand, as well as those who have more insurance product knowledge than me, suggests that there would be problems getting any Life Insurance coverage within such a short time frame.

As a Real Estate Broker in Massachusetts, and from the short sales I have done, I would definitely NOT go the route of a reverse mortgage. There are soooo many shady people out there, I would advise against it unless she had a well-trusted attorney (one who had nothing whatsoever to do with the Rev. Mortg. co.) who would watch over the transaction – double-check it, triple-check it, and then quadruple-check it. I can tell you, I’ve dealt with reverse mortgage clients who would have lost everything had it not been for me successfully selling their home before all equity was siphoned away by the Reverse Mortgage company.

Fixed Income Annuities & Social Security Benefits:

Please think twice before even considering a Reverse Mortgage. My advice is for her would be to list the home – especially if there’s a good bit of equity left over what’s owed. She could then buy something smaller, even a small condo as it would save her from exterior maintenance. She may also consider moving to a state with a lower cost of living, and invest whatever she has left over into a Fixed Income Annuity that would provide her with additional monthly income. Further, if she was married for over 10 years and he was the top earner in the family over the years, and she is claiming or already receiving Social Security under his name, she will receive additional benefits once he passes.

Bottom Line – Buy Life Insurance!

So, for those who are considering buying life insurance, but haven’t yet, please consider doing so as soon as possible. The younger and healthier you are, the cheaper it is – not to mention you would also be building wealth if it’s a Whole Life Policy. If I had known “then” what I know “now,” I would have purchased my policy a long, long while ago.

I hope this scenario helps to convince those who are on the fence about purchasing life insurance. It is a real-world scenario, and it can happen to you, your loved ones, or someone you know.

God Bless,
~Toni

 

Toni Nicholas – Currently (06-19-2023) Licensed in MA, MI and FL for Life Insurance and Fixed Income Annuities

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Stimulus Payment Check – Info For Seniors Who Will Need to File!

UPDATE as of April 2, 2020: Seniors who don’t normally file a return will not have to in order to receive their check.Their money will be directly deposited via their Social Security method of payment.

Please click here for more info: Stimulus Payment Info.

 

If you have a computer, or a family member, acquaintance or friend who has one and who can help you out, you will need to file a Tax Return in order to receive your stimulus payment.

You will need:

  • Your Social Security Number – your actual card is even better as the first four letters of your last name are needed exactly as they are typed on your card and they must match, exactly, your last name printed or filled out on your 1040 SB return.
  • Your Date of Birth – as known by the SSA.
  • The Printout of your yearly Social Security payout, or, at the very least, your monthly check amounts in order to calculate your annual amount.
  • Your Bank’s Routing Number, and your Bank Account number in order to input that info on the form. This is the only way you will receive payment as they are not sending an actual check.
  • A 1040 SB paper return or, if you can file electronically, that is even better and much quicker.

If, by chance, you have already filed, and did not input your Bank information, the IRS will be creating a web page where you can go to input your Bank Routing and Account information. Once again, this is the only way you will be able to receive your payment.

Please stay tuned as I will update this page as needed.

Thank you for your visit, and I hope the information is helpful! If you have any comments, please leave them below.

Thank you,

~Toni